Global Sourcing Models

Global Sourcing is a business reality, we know that. And as an organization, you have either started the process or are planning to source resources globally. But you don’t know what and how global sourcing works. The market is now very mature and different kinds of models have been successfully implemented. This article would be focussing specifically on models that would work for Small & medium businesses (SMB)

Offshore/Nearshore delivery model

The offshore or nearshore delivery model is typically associated with companies that need additional resources. This model could be defined as the process of executing IT projects with the help of resources located at one or more remote locations. The teams executing the task would be located at a remote location. The client could have a team onsite and would use the remote resources in a staff augmentation role.

Global delivery model

The global delivery model is typically associated with companies that have a more strategic focus on remote locations. This model could be defined as the process of executing projects with the help of outsourced resources located at the client as well as multiple nearshore or offshore locations. The teams might be located at the client site or at a remote site.

Captive units

The Captive unit is typically associated with companies that plan to, or already have a significant global presence. This model could be defined as a remote office which is a subsidiary of the parent company. The remote teams would be located at the client’s remote office.

BOT model

The Build Operate Transfer Model (BOT) is associated with organizations that, in the future, would like to have a captive unit, but want to outsource building up the organization. They would typically start with either an offshoring model or global delivery model and have agreements in place to move into a captive unit with the resources either after a certain timeframe or after reaching a specific resource count.

Other models

Joint ventures & Onsite delivery models are other popular models, but SMB typically is not the right fit for these kinds of models.

Covalnz Advisory services is a consulting firm that works for Small and Medium businesses to help find the right IT partners to source globally.

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